How much gain must jerome recognize on the distribution

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Jerome's basis in his partnership interest is $50,000. Jerome receives a pro rata liquidating distribution consisting of $10,000 cash, land with a basis of $40,000 and a fair market value of $60,000, and his proportionate share of inventory with a basis of $30,000 to the partnership and a fair market value of $50,000. Assume that the partnership also liquidates.

Problem a. How much gain or loss, if any, must Jerome recognize on the distribution?

Reference no: EM132779705

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